NZD: Domestic factors will remain supportive - BNZ

Jason Wong, Currency Strategist at BNZ, notes that the NZD is up by more than 0.5% to 0.7280, with a larger than expected trade deficit for August having little impact.

Key Quotes

“The NZD was under pressure at the end of last week following the RBNZ OCR review, but the dip has seen buyers return. Yesterday we tweaked our 3 and 6-month NZD targets upwards by 2 cents to 0.72 and 0.70 respectively. Despite the prospect of weaker global risk appetite in more volatile market conditions into year-end, we think that strong domestic factors will remain supportive for the NZD.”